Reps Launch Probe into $2bn Renewable Energy Investments

Reps Launches Probe into $2bn Renewable Energy Investments
House of Reps Members during plenary
President Bola Tinubu had previously highlighted the sector’s growth, announcing in July 2024 that the renewable energy industry attracted over $2 billion in investment within ten years.

Abuja, Nigeria — The Nigerian House of Representatives has announced an investigation into the nation’s renewable energy investments, focusing on $2 billion in grants and investments.

The House Committee on Renewable Energy, led by Chairman Victor Ogene, has called on key stakeholders for an investigative hearing scheduled for November 5 and 6, 2024, to scrutinize the impact and management of these funds.

This inquiry comes in response to the government’s longstanding struggle with Nigeria’s electricity generation and supply issues. Despite the influx of over $2 billion in renewable energy investments over the past decade, according to the Rural Electrification Agency (REA), Nigeria’s energy security has not seen a proportional improvement.

Chairman Ogene emphasized that the probe aims to uncover any discrepancies in the sector’s funding processes and promote transparency and accountability in the management of public resources.

Historical Context and Motivation for the Probe

President Bola Tinubu had previously highlighted the sector’s growth, announcing in July 2024 that the renewable energy industry attracted over $2 billion in investment within ten years. During his address at the Africa Natural Resource and Energy Investment Summit, the President reiterated the government’s commitment to attracting more private investment and supporting local manufacturing for renewable energy technologies, such as solar panels and batteries. The administration aims to reduce electrification costs by encouraging domestic production.

However, lawmakers and industry stakeholders have voiced concerns over the sector’s actual performance. Mr. Okey-Joe Onuakalusi, representing Oshodi-Isolo II Federal Constituency, introduced a motion in the House, warning that persistent problems in electricity transmission, generation, and distribution are threatening Nigeria’s industrial and technological ambitions. The motion was adopted in June 2024, mandating the House Committee on Renewable Energy to conduct a full investigation into all renewable energy investments, grants, and procurement activities since 2015.

Focus and Scope of the Investigation

The House’s inquiry will examine a range of significant investments, including a $750 million World Bank facility approved in December 2023 to enhance Nigeria’s renewable energy access for an estimated 17.5 million people. Another key initiative under review is the $200 million Nigeria Electrification Project, launched in 2020 with funding from the African Development Bank, aimed at providing off-grid power to approximately 500,000 people across rural communities.

The investigation seeks to evaluate the integrity and effectiveness of procurement and project execution processes among ministries, departments, and agencies (MDAs) responsible for overseeing these investments. Chairman Ogene clarified that the investigation is not intended as a “witch-hunt” but rather as an effort to ensure that Nigeria’s renewable energy funds are utilized effectively.

Entities Summoned for the Hearing

Invitations to testify have been extended to various federal agencies and stakeholders, including the Rural Electrification Agency, Nigerian National Petroleum Company Limited, Nigerian Content Development and Monitoring Board, National Agency for Science and Engineering Infrastructure, Ministry of Petroleum Resources, and the Nigerian Sovereign Investment Authority.

Additionally, international partners and private entities involved in the renewable energy sector will also participate, including the European Union, the United States Agency for International Development, and Union Bank Plc’s Compliance Department.

Other agencies such as the Energy Commission of Nigeria, Niger Delta Power Holding Company, Federal Ministry of Power, and Ministry of Science, Technology, and Innovation have also been invited to provide insights and records related to renewable energy investments and project implementation.


Copyright 2024 REPORT AFRIQUE (RA). Permission to use portions of this article is granted provided appropriate credits are given to www.reportafrique.com and other relevant sources.This Article is Fact-Checked. See Policy.
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